Treasury Services

Our primary function is to manage the liquidity of the B.C. and Ontario credit union systems. By providing a variety of funding programs and investment products to credit unions, Central 1 enables a strong and stable credit union system.

We are a financially strong organization with industry leading capital ratios and assets in excess of $16 billion. In addition to our intrinsic liquidity of credit union deposits, we maintain access to external funding and capital via the capital markets. Central 1 has accessed fixed income markets for over a decade issuing Medium Term Notes (MTN) and Subordinated Debt and maintaining an active Commercial Paper (CP) program. We are rated A (high)/R-1 (mid) by DBRS and A/A-1 by S&P.

Central 1 is regulated by the Financial Institution Commissions of British Columbia (FICOM), promoting prudent and industry-leading risk management practices along with strong regulatory oversight. We enjoy the benefit of regional diversification through our role as the central credit union for both B.C. and Ontario. With over $96 billion in total system assets, we represent more than 55 per cent of Canada’s credit unions outside of Quebec.

Deposits and investments

By accepting Non-Mandatory Deposits from credit unions and lending funds to those credit unions with liquidity needs, Central 1 facilitates the circulation of liquidity within the credit union system.  By pooling credit unions’ liquidity and investing in high quality liquid assets in the capital markets, we achieve economies of scale and favourable returns for our members.

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By offering a variety of credit facilities and mortgage funding programs, Central 1 creates holistic liquidity and funding solutions for credit unions.

Credit facilities support the structural and tactical liquidity needs of our member credit unions. These include Clearing & Payments facilities, Term Loans, Letters of Credit, Guarantees and Capital Markets facilities.

Residential mortgage funding programs are cost effective liquidity management tools used for funding diversification, contingency planning and addressing liquidity gaps. Among the active securitization programs available are the NHA Mortgage-Backed Securities (NHA MBS) and Canada Mortgage Bond (CMB) programs. In addition, Central 1 purchases whole residential mortgage loans from credit unions and provides access to an Asset-Backed Commercial Paper (ABCP) conduit program. 

Derivative and foreign exchange products

Central 1 offers credit unions and commercial clients advisory and execution services related to Interest Rate Derivatives and Foreign Exchange transactions. 

The Interest Rate Derivatives business focuses on hedging strategies for mortgage origination and balance sheet exposures. Solutions include interest rate swaps, swaptions, caps, floors and bond forwards.

The Foreign Exchange business provides execution services across a full spectrum of currencies. These solutions are facilitated through foreign exchange spot, forward and option transactions.  

Commercial lending syndication

Our commercial loan syndication program assists in funding commercial loans that might otherwise be too large for a single credit union. Specifically, our syndication program assists member credit unions with achieving portfolio diversification by geography or asset class, employing excess liquidity and expanding relationships that may be limited by single name / portfolio policy restrictions.

Financial Services/Central 1 Trust

Through Central 1’s Financial Services department and Central 1 Trust Company, we provide cost-effective financial products that meet credit unions’ requirements for value, service and selection. Products include registered plans (RRSPs, TFSAs, etc.) index-linked term deposits, Canada Savings Bonds and custodial services.

 

Get in touch |  1.800.661.6813